Rents continue to rise, tenants struggle to find a place to live

Apartment rents continue to rise

The apartment rental market in Hanoi is constantly increasing, especially in the last months of the year, when demand is high.

After searching for an apartment to rent for a month, Nguyen Thi Oanh and her husband (Hoang Mai, Hanoi) still cannot settle down because the rent price keeps increasing and the landlord requires many strict terms from the tenant.

"My family plans to rent a 2-bedroom apartment, priced at 8-10 million VND/month in Hoang Mai district for the convenience of our children's work and study. However, despite going through many brokerage channels, renting an apartment is still difficult because the number of apartments for rent is very small," said Ms. Oanh.

In addition to not having many options, according to Ms. Oanh, apartment rental prices have also increased by VND500,000 to more than VND1 million compared to the previous August. "A 2-bedroom apartment in The One Residence building is currently priced at VND8.5-9.5 million. Tenants also have to pay additional service fees, parking fees... about VND500,000-600,000/month," Ms. Oanh gave an example.

Giá thuê nhà liên tục tăng, người thuê chật vật tìm chỗ an cư - 1 — The number of apartments for rent is not much, the rental price is constantly increasing (Illustration: Ha Phong).

Similar to Ms. Oanh's family, in recent days, Mr. Nguyen Anh Duc (Thanh Xuan, Hanoi) has also had to run around looking to rent an apartment in Thanh Xuan district to soon stabilize his family's life.

According to Mr. Duc, apartment rental prices are high at this time, on average a 2-bedroom apartment costs between 12-15 million VND/month, with some apartments renting for up to 20 million VND/month.

According to a survey by Dan Tri reporters, the rental price of apartments around the central area of Hanoi has increased relatively strongly in recent years, especially recently. For example, in the third quarter of 2022, the average rental price of apartments at Mipec Xuan Thuy fluctuated between 10-18 million VND/month. However, the current rental price has increased to 12-20.8 million VND/month.

Similarly, apartments in Royal City (Thanh Xuan) also increased in price by nearly 3 million VND compared to the same period. Specifically, in the third quarter of 2022, apartments here were rented at an average price of about 20 million VND/month. However, the average rental price has now increased to 22.9 million VND/month.

Apartment rental prices in Nam Tu Liem district also increased by VND2-2.5 million compared to the same period in 2022. For example, apartments in Florence (Nam Tu Liem) in the third quarter of 2022 were rented for VND10.5-15.5 million/month. However, the apartment is currently being rented for VND13-15.5 million/month.

Investors "change taste" to renting

According to Mr. Nguyen Duc Minh - a real estate broker in Hanoi - the demand for renting apartments in Hanoi has been increasing continuously in recent times. Meanwhile, the supply of apartments for rent is not much, causing the rental price to increase.

"Most apartment rental prices in Hanoi have increased, especially in centrally located apartments. Apartment rental prices have increased from several hundred thousand dong to millions of dong per apartment per month," said Mr. Minh.

According to Mr. Minh, apartment renters at this time, in addition to the pressure of high prices, also have to endure strict terms from the landlord. These terms include: long-term lease, high deposit and payment amount is also more than the usual 3 months.

Sharing the reason for the increase in apartment rental prices, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that in the context of high selling prices increasing by 30-40% in the past time, real buyers and investors will have a wait-and-see mentality and shift their attention to the rental sector more. Rental apartments are one of the targets of this shift.

According to him, in reality, workers and students returning to the city, workers in industrial parks and export processing zones receiving housing rental support also push up rental prices.

According to an expert from a real estate market research unit, the market is currently shifting investors' direction. Instead of being loyal to low-rise products, they are using the same amount of money to buy 10 mid- to high-end apartments.

Accordingly, simply because with the same investment capital, a villa can be rented for 50-60 million VND/month and there is no cash flow mobility. Meanwhile, with 10 apartments, investors can earn 15-18 million VND/apartment, the total rental income is up to 180 million VND/month. Besides, the apartment price will also increase gradually over time.

Source